2015 New York Laws
GMU - General Municipal
Article 5 - (General Municipal) POWERS, LIMITATIONS AND LIABILITIES
99-S - Transfer and sale of delinquent real estate tax receivables.

  99-s.  Transfer and sale of delinquent real estate tax receivables.
  1. A city with a population of one million or more, acting  through  its
  finance  commissioner,  collector  of taxes or other officer responsible
  for the collection of real  estate  taxes,  may  sell  or  transfer  any
  portion  of  or  all  its  interest in any or all of its delinquent real
  estate tax receivables,  including  any  penalty  or  interest  thereon.
  Provided,  however,  no  such  sale or transfer shall take place without
  adoption of a local law, ordinance or resolution authorizing  each  such
  sale or transfer.
2.  a.  Delinquent  real  estate tax receivables shall be sold only at
  public sale to the bidder offering the highest total return to such city
  including fees and other payments.
b. There shall be published, at least once, not  less  than  five  nor
  more  than  thirty  days  before  the  date fixed for the public sale of
  delinquent real estate tax receivables, a notice of  such  public  sale.
  Such  notice shall be published in any financial newspaper published and
  circulated in such city  which  the  state  comptroller,  by  rules  and
  regulations,  shall  designate for such publication, or in lieu thereof,
  such notice shall be circulated in such manner as the state  comptroller
  shall  prescribe,  within  ninety  days  after  this  section shall take
  effect, pursuant to such rules and regulations and shall be published in
  any newspaper or newspapers which the finance board  of  such  city  may
  designate for such purpose.
c.  Such  notice  shall  call for sealed bids for the purchase of such
  delinquent real estate tax receivables, and shall state:
1. The place where bids will be received and considered.
2. (a) The time and date for the opening of bids, which shall be  only
  on  weekdays,  Saturdays and holidays excluded, between the hours of ten
  o'clock ante meridian and four o'clock post meridian,  eastern  standard
  time.
(b)  In  lieu of the statement of the time and date for the opening of
  bids required by clause (a) of this subparagraph, a statement  (i)  that
  the  time  and date for the opening of bids will be provided on not less
  than twenty-four hours prior notice by means of a supplemental notice of
  sale and indicating the manner in which such supplemental notice will be
  provided, or (ii) setting a time and  date  for  the  opening  of  bids,
  stating  that  notice of a change in the time or date for the opening of
  bids may be provided not less than twenty-four hours prior to  the  time
  originally  scheduled for the opening of bids by means of a supplemental
  notice of sale and indicating the  manner  in  which  such  supplemental
  notice  will be provided. Where notice is given that the time or date of
  a sale will be changed without specifying the new time or  date,  notice
  of  the  new  time or date of sale must be provided by means of a second
  supplemental notice of sale at least twenty-four hours prior to the  new
  time for the opening of bids.
(c)  A supplemental notice of sale shall refer to and be deemed a part
  of the notice of sale required by this section and shall  not  establish
  or  change  the  terms  of  the sale other than the time or date for the
  opening  of  bids.  The  time  set  for  the  opening  of  bids  in  the
  supplemental  notice  of  sale shall not be less than five nor more than
  thirty days after publication of the notice of sale required pursuant to
  paragraph a of this subdivision.
(d) Public notice of the time and date set for  the  opening  of  bids
  shall  be  given  to  the  news media and shall be posted in one or more
  designated public locations within such city at least twenty-four  hours
  prior  to  the time and date set for the opening of bids or, in the case
  of a time and date set or changed in a supplemental notice of  sale,  at
  least  twenty-four hours prior to such time and date; provided, however,

  that such public notice shall not be construed to require publication as
  a legal notice.
d.  All  bids shall be opened publicly at the time and place stated in
  the notice of sale, and not before, and  shall  be  publicly  announced.
  Prior  to  the  time fixed for such public opening of bids, a sealed bid
  may be amended by a bidder by delivery  to  the  official  to  whom  the
  sealed bid was delivered of a sealed amendment to such bid. No bid shall
  be amended by a telegraphic or telephonic communication.
e.  Advertisements  shall  contain a provision to the effect that such
  city, in its discretion, may reject any or all bids made in pursuance of
  such advertisements, and in the event of such rejection,  such  city  is
  authorized  to  readvertise  for  bids  in  the  form  and  manner above
  described as many times as, in its judgement, may be necessary to effect
  a satisfactory sale.
3. Without limitation of the foregoing, any sale or transfer agreement
  entered into pursuant hereto may also contain provisions requiring  such
  city  to  undertake  to  replace  such receivable with the transferee or
  purchaser for any misrepresentation or mistake as to the description  or
  status of any delinquent real estate tax receivable which is the subject
  of such sale or transfer agreement.
4. In no event shall such city pay any such receivable other than from
  moneys  collected  thereon  by  such city. Any revenues received by such
  city for payment of delinquent real estate taxes including any penalties
  and interest thereon where the interest in such delinquent  real  estate
  tax  receivable  has  been  sold or transferred, shall be deposited in a
  special fund to be created by such  city.    Such  fund  shall  be  kept
  separate  and  apart  from  any  other  funds and accounts of such city.
  Moneys in such fund shall first be used to  pay  any  such  receivables.
  Moneys  in the fund in excess of that needed to pay such receivables may
  be used for any other city purpose as authorized by  law.  In  no  event
  shall  such  city  guarantee  payment,  or  be construed as guarantor of
  payment for such receivables.
5. Such city shall remain responsible for  servicing,  collecting  and
  enforcing any such receivables in the same manner as if such receivables
  had  not  been sold.   The obligation of such city to service or collect
  any such receivables on behalf of the purchaser  or  transferee  thereof
  shall  terminate  with  respect  to  each receivable upon the date three
  years from the date such receivable was sold or transferred by such city
  or such earlier date as payment is made to such purchaser or  transferee
  of  such receivable, including any penalty or interest thereon, equal to
  the consideration paid for such sale or transfer plus any fees or  other
  payments  in  accordance  with  the  terms  of  sale  or transfer of the
  receivables and such city shall  thereafter  collect  and  enforce  such
  receivables solely on its own behalf.
6.  The  transferee  of  the delinquent real estate tax receivables or
  interests therein, during the term of an agreement with such  city,  may
  perfect   a  security  interest  in  such  delinquent  real  estate  tax
  receivables or interests therein by the filing of financing  statements,
  as provided in article nine of the uniform commercial code, with respect
  thereto giving a reasonable description of such receivables or interests
  so transferred as identified on the records kept for such purpose by the
  officer  of  such  city  responsible  for  the collection of real estate
  taxes.